Psychology is a critical component of the workplace and business set-up. Neglecting employees’ psychological well-being is likely to have a significant adverse impact on the business and workplace.

At all levels of organizations, psychology helps managers select, support, motivate and train employees. It also helps businesses in designing products, building better workspaces and promoting healthy behavior and activities.

On that note, Hirav Shah, Renowned Business Transformation Expert, explains the importance of psychology on Business and Industry !!

The importance of psychology in business and industry

1. Negotiations

Something that is inevitable for any business leader is negotiating with a partner, an investor, or a supplier. It’s an experience where dispute is very common, and you’re faced with severe discomfort while trying to get what you need without giving up too much.

Let’s look at a few practical tips where psychology can be applied to negotiate better:

A. When engaging in negotiations, think about shared interests rather than opposing positions. For example, if your client is interested in a discount, and you can’t offer the same, it may appear as if you have opposing interests.

However, if your customer is under pressure to stay within their budget, you could offer them training for free, to use your product more productively, thereby reducing their costs and helping them make more money.

B. If you want the other party to acknowledge a significant issue in your favor, give in to a smaller point earlier. This creates an agreeable feeling, and they are more likely to admit to what you want later.

All on its own, negotiation is an area of study. And by understanding how folks feel and function, you stand to negotiate better for your company and organization.

2. Marketing

Psychology is most obviously used in marketing. Marketers need to design products that anticipate consumer needs and desires. It is thus important that marketers understand how consumers think.

For psychology to work effectively with marketers it has to be skillful, ethical, and geared not to manipulate the consumer. Using the technique can backfire on a company the moment they realize they are being used to the benefit of the company. Customers may blacklist a company if they realize products do not meet their needs.

Consumers need to know that the company selling products and services understands their needs and cares for them. If you are selling a baby stroller for example to potential mothers, include in your marketing campaigns the hustle mothers will face jostling shopping while taking care of their kids.

This creates a mental picture in their minds that you care about the challenges they face. Building trust will help you sell more products.

Final Thoughts

Psychology is used in operations, HR, finance and throughout organizations. Think about team-building exercises, goal-setting, sales contests, and conflict resolution-psychology is applied everywhere, correct… Business people often ask is crowdfunding the right source to launch startups successfully, yes why not, again it’s action related to human psychology.

The science of psychology has redefined and informs our concept of what goes into a successful and efficient workplace. Psychology affects technology as well, helping to shape IT and technology functions to make employee lives easier, Concludes Hirav Shah-The Most Prominent Business Enhancement Expert of Our Country.